Subdivision 1. Authorization. An authority may from
time to time issue bonds, or other obligations however
designated, in principal amounts as it shall deem necessary to
fulfill its purpose and to exercise any of its powers, to
provide funds for operating expenses in anticipation of revenues
of the current year, or for capital expenditures in anticipation
of the issuance of long term bonds or the receipt of a grant or
loan of state or federal funds, to refund the principal of or
interest or redemption premiums on outstanding bonds whether or
not the amounts refunded have become due and payable, to
establish or increase reserves to secure the payment of bonds or
interest on them, and to pay costs and expenses of the issuance
of the bonds.

Subd. 2. Security. Bonds may be made payable
exclusively from the revenues from one or more projects, or from
one or more revenue producing contracts, or from the authority's
revenues generally, including but not limited to specified taxes
which the authority may levy or which a particular municipality
may agree to levy for a specified purpose, and may be
additionally secured by a pledge of any grant, subsidy, or
contribution from any public agency, including but not limited
to a participating municipality, or any income or revenues from
any source. They may be secured by a mortgage or deed of trust
of the whole or any part of the property of the authority. They
shall be payable solely from the revenues, funds, and property
pledged or mortgaged for their payment. No commissioner,
officer, employee, agent, or trustee of the authority shall be
liable personally on its bonds or be subject to any personal
liability or accountability by reason of their issuance.
Neither the state nor a county or other municipality except the
authority may pledge its faith and credit or taxing power or
shall be obligated in any manner for the payment of the bonds or
interest on them, except as specifically provided by agreement
under section 398A.06; but nothing herein shall affect the
obligation of the state or municipality to perform any contract
made by it with the authority, and when the authority's rights
under a contract with the state or a municipality are pledged by
the authority for the security of its bonds, the holders or a
bond trustee may enforce the rights as a third party beneficiary.
All bonds shall be negotiable within the meaning and for the
purposes of the Uniform Commercial Code, subject only to any
registration requirement.

Subd. 3. Bond resolution or indenture. Bonds of the
authority shall be authorized by resolutions of its board of
commissioners which may set forth, or may authorize and direct
the execution of an indenture or security agreement with a
corporate trustee setting forth, the terms and conditions
thereof, the covenants and agreements entered into by the
authority for their security, the real and personal property, if
any, which is mortgaged or pledged for their further security,
the rights and duties of the trustee, if any, and the manner of
and conditions for adoption of amending or supplemental
resolutions or indentures. Covenants may be made regarding:

(a) the custody, collection, securing, investment,
reinvestment, and disbursement of bond proceeds and any revenues
with respect to which the authority has any right or interest;

(b) the purposes to which the proceeds shall be applied,
and the pledge of the proceeds, until so applied, to secure the
payment of the bonds and interest thereon;

(c) the rentals, rates, or charges to be established for
use and availability of the authority's property or service;

(d) the establishment of funds or accounts for the
disbursement of proceeds, the segregation of revenues, and the
debt service and reserve requirements of the bonds;

(e) the conditions for the issuance of any additional bonds
and the refunding of outstanding bonds and the terms upon which
additional bonds may be issued and secured;

(f) the priority of any bonds with respect to any pledge of
revenues, mortgage, or security interest;

(g) the operation and maintenance of any property, the
revenues of which are pledged;

(h) the custody of any of the authority's property or
investments, its safekeeping, the kinds of securities in which
funds may be invested and reinvested, the insurance to be
carried on property and against liability, and the use and
disposition of insurance proceeds;

(i) the vesting in a corporate trustee, within or outside
the state, and successors and individual cotrustees as may be
provided for, of funds and properties and trust rights and
powers as the authority may determine, and the limitation of the
rights, powers, duties, and obligations of the trustees;

(j) the appointment of any paying agent within or outside
the state; and

(k) any other matter reasonably related to the security of
the bonds.

Subd. 4. Sale. Bonds may be issued and sold in one
or more series, at public and private sale, at the price,
bearing the date or dates, maturing at the time or times,
bearing interest at the rate or rates, in the denominations, in
the form whether coupon or registered, with the privileges of
conversion, exchange, and registration of transfer, having the
rank or priority, to be executed on behalf of the authority by
the officers and other persons, to be subject to the terms of
redemption with or without premium, and to contain or be subject
to the other terms the resolution, indenture, or security
agreement may provide, and shall not be restricted by any other
law limiting the amount, maturities, interest rates, purchase
price, or other terms of obligations of public agencies or
municipalities.

Subd. 5. Recitals. The authority shall be estopped
to deny the correctness of any recital in any bond or any
certificate given by direction of the authority, that it has
been issued pursuant to the provisions and for the purposes of
the Regional Railroad Authorities Act, and that all conditions
precedent to the issuance exist or have been performed.

Subd. 6. Bonds as investments and security for
deposits. Notwithstanding any other law, the state of
Minnesota and all its public officers, governmental units,
agencies, and instrumentalities, all banks, trust companies,
savings banks and institutions, savings associations, investment
companies, and other persons carrying on a banking business, all
insurance companies, insurance associations, and other persons
carrying on an insurance business, and all executors,
administrators, guardians, trustees and other fiduciaries may
legally invest any sinking funds, money, or other funds
belonging to them or within their control in any bonds or other
obligations issued pursuant to this section, and the bonds or
obligations may be pledged as security for any public deposits.